Kalera Public Limited Company (Nasdaq: KAL), announced selected preliminary financial results for its third quarter ended September 30, 2022.
Kalera Preliminary Q3 Results:
- The company expects net sales of approximately $1.6 million, more than double that of the third quarter of 2021, driven primarily by increased volumes and improved product mix.
- Capacity utilization is expected to be approximately 24% vs. 11% in the prior year’s third quarter, progressing toward Kalera’s intermediate capacity utilization goal to facilitate profitability of 70% by the end of 2023, as presented at the company’s investor event in September.
- The company anticipates volume sold to increase to 480,000 pounds vs. 240,000 pounds in the same quarter last year.
“We continued to see momentum in our business in the third quarter along with meaningful revenue growth and customer partnerships. The demand for our products is not only strong but accelerating,” said Jim Leighton, President, and Chief Executive Officer, commenting on Kalera Preliminary Q3 Results. “Strong and growing sales velocities demonstrate that we are improving our mix across product lines to higher margin products and a more balanced and profitable sales channel mix. In addition, we have increased points of distribution and added to the number of stores selling Kalera brand leafy greens.
“We’ve made significant progress on our profitability targets in the quarter, improving both yields and capacity utilization. As presented at our investor event in September, Kalera’s top strategic priority is to bring our U.S. farms to cash flow positive as soon as possible. To accelerate this goal, we successfully completed a public stock offering and announced the planned sales of our international and Vindara businesses. These are important steps providing necessary growth capital and significantly reducing corporate overhead to align resources with our strategy. We remain optimistic about Kalera’s future and the impact we can have on the food industry and the environment.”
Kalera’s indoor vertical farming operations use approximately 95 percent less water and 99 percent less land than traditional farming to grow its leafy greens, which are cleaner, more nutritious, and more flavorful than greens that are grown to be shipped thousands of miles. Kalera’s farms serve customers within a 300-mile radius, so their products are always fresh, always local, and always available.
The selected financial information for the third quarter of 2022 Kalera has provided in this release is preliminary. This preliminary, unaudited financial information is based on Kalera’s initial review of the information presented and its current expectations and is subject to adjustment. As such, any financial information contained in this press release may differ materially from the information reflected in Kalera’s financial statements for the quarter that ended September 30, 2022. Additionally, this release does not present all the necessary information for an understanding of Kalera’s financial condition or its results of operations for the third quarter of 2022. Accordingly, undue reliance should not be placed on this preliminary information. The company expects to release its full financial results for the third quarter on November 14, 2022.